USD/CHF dips below 0.8400 and brings the 0.8295 long-term low back into play
29.12.2023, 11:17

USD/CHF dips below 0.8400 and brings the 0.8295 long-term low back into play

  • The Dollar fails at 0.8450 and remains dangerously close to the long-term low of 0.8295.
  • Soft US data is fuelling hopes of Fed cuts and weighing on the US Dollar.
  • USD/CHF is on track to close the year with a nearly 10% depreciation.

The US Dollar is reversing Thursday´s gains against the Swiss Franc. The pair has returned below 0.8400 approaching the 2015 low at the 0.8300 area in the last trading day of the year.

The pair is on track to end the year with a nearly 10% decline, hammered by the dovish pivot signaled by the Fed at its December meeting. Investors have ramped up bets of Fed cuts in early 2024, which have sent US Treasury yields plunging, dragging the US Dollar down with them.

In the calendar today, the Chicago PMI is expected to show a deterioration in business activity. This would be in line with the higher-than-expected jobless claims and the stalling home sales seen on Thursday and unlikely to provide significant support to the US Dollar.

From a technical perspective, the pair remains under strong bearish pressure, with the next support levels at 0.8345 and the 2015 low at 0.8295. Resistances are 0.8450 and 0.8515.

Technical levels to watch

 

 

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